Pennant's First "Extended Reach" Montney Horizontal Well TD'd

Vancouver, B.C., Jan. 10, 2012 - Thomas Yingling, President of Pennant Energy Inc. (TSX.V-PEN) announces that Pennant has been advised by the operator, Donnybrook Energy Inc, that the DEI Bigstone Hz 15-32-60-22 W5M "extended reach" horizontal well (25% working interest to Pennant) has been drilled to total depth ("TD") and the completion string has been installed in preparation for fracing operations, scheduled for January 15, 2012. The well was drilled directionally to a total measured depth of 5,512 meters from the 3-29-60-2W5 surface location and included an extended reach lateral through the Montney Formation measuring 2,744 meters at the 15-32-60-22W5 bottom-hole terminus. The completion string is configured to conduct a continuous, multi stage fracture stimulation consisting of up to 24 stages over the length of the horizontal lateral. The completion operations including the frac procedure, production test and preparing the well in readiness for tie-in to sales are estimated to be accomplished by early to mid February, 2012.

The 15-32 well horizontal section is over twice as long (close to 1,500 meters longer) than Pennant's first successfully tested Montney horizontal well, DEI Bigstone Hz 14-29-60-22W5. The 14-29, (37.5% BPO/25% APO working interest) which parallels part of and directly offsets the 15-32 well, flowed at a rate of approximately 4.3 million cubic feet per day of natural gas (mmcf/d) and 295 barrels per day (bbl/d) of condensate from a 1,254 meter lateral (1,011 barrels of oil equivalent per day (boe/d)) during the last 24 hours of a 4 day production test. The 15-32 well will be frac'd with the same, synthetic oil-based multi-stage system utilized in the completion of the 14-29 well.

The long lateral or "extended reach" horizontal wells, in suitable areas, have the potential of reducing well density by up to 50% over the shorter 1200 meter laterals, improving project economics and substantially reducing the surface environmental footprint. To date, 11 of the 15 Montney horizontal wells currently drilled in the Bigstone/Fir area are "extended reach" with laterals ranging in length from 2,200 to 2,800 meters, while the remaining four wells have laterals of 1,200 to 1,300 meters. Each of these shorter laterals were drilled by local operators, to assess the development potential of the Montney formation, liquids rich natural gas resource in this area by employing current, state of the art horizontal drilling and fracture stimulation techniques prior to moving to the extended reach longer laterals for development purposes.

Planning for drilling a third well and construction of gas gathering and production facilities are currently underway with a targeted start-up and on stream to sales commencing in Q2 2012. Pennant holds a 25% working interest in 7 gross sections (1.75 net) sections at Bigstone, which could potentially support an equivalent of 4 (1.0 net) horizontal wells per section, depending on lateral length.

Pennant and its partners continue to work toward having 3 wells drilled completed and tied in by the end of the winter drilling season. Thomas Yingling President of Pennant Energy Inc. stated, " Once these first Bigstone wells are on stream it will add significantly to our current production and reserve base as well as our overall understanding of the Bigstone prospect's potential."

To view a brief video detailing the horizontal frac process please visit our web site at and for further information on any of our projects please feel free to contact the company at 604-689-1799.

ON BEHALF OF THE BOARD OF DIRECTORS OF
PENNANT ENERGY INC.

"Thomas Yingling"
Mr. Thomas Yingling
President

Oil Equivalency Conversion (BOE)
Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6 Mcf = 1 BOE). The conversion ratio is based upon an energy equivalent conversion method, primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE values may be misleading, particularly if used in isolation. Furthermore, this News Release may contain forward-looking statements based on assumptions
and judgments of management regarding future events or results that may prove to
be inaccurate as a result of exploration and other risk factors beyond its
control, and actual results may differ materially from the expected results
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the completion of the Bigstone 15-32 well, the timing of tie-in, anticipated initial production, drilling plans for the Company's Bigstone acreage, potential drilling locations, the drilling of additional wells and the construction of a gathering system at Bigstone and projected corporate Q2 2012 production date. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Pennant's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Pennant believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our management's discussion and analysis, Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Pennant does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.